Arbor Realty Trust (NYSE:ABR) Sets New 12-Month Low - Here's What Happened

Key Points

• Arbor Realty Trust shares fell to a new 52-week low of $2.53 during mid-day trading, with nearly 8 million shares changing hands.
• Analyst sentiment remains cautious: the stock has a consensus “Reduce” rating and a $5.12 price target, while JPMorgan and Piper Sandler recently lowered their targets.
• The company beat quarterly earnings and revenue estimates, but its $0.17 quarterly dividend implies a very high 25.4% yield and a 971.43% payout ratio, raising sustainability concerns.

Arbor Realty Trust (NYSE:ABR - Get Free Report)'s share price hit a new 52-week low during mid-day trading on Monday. The stock traded as low as $2.53 and last traded at $2.6750, with a volume of 7,951,756 shares changing hands. The stock had previously closed at $2.69.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on ABR shares. JPMorgan Chase & Co. upgraded Arbor Realty Trust from an "underweight" rating to a "neutral" rating and cut their target price for the stock from $7.00 to $5.50 in a research report on Friday, July 17th. Weiss Ratings cut Arbor Realty Trust from a "sell (d+)" rating to a "sell (d)" rating in a research report on Thursday, July 30th. Piper Sandler decreased their target price on Arbor Realty Trust from $5.00 to $3.50 and set an "underweight" rating for the company in a research report on Friday, October 9th. Citizens Jmp restated a "market perform" rating on shares of Arbor Realty Trust in a research note on Tuesday, September 29th. Finally, Zacks Research raised Arbor Realty Trust from a "strong sell" rating to a "hold" rating in a research report on Monday, August 31st. Three analysts have rated the stock with a Hold rating and three have assigned a Sell rating to the company. According to data from MarketBeat, Arbor Realty Trust has a consensus rating of "Reduce" and a consensus price target of $5.12.

Arbor Realty Trust Stock Performance

The firm has a market cap of $499.05 million, a price-to-earnings ratio of 38.21 and a beta of 1.22. The company has a quick ratio of 478.85, a current ratio of 478.85 and a debt-to-equity ratio of 2.33. The stock has a fifty day moving average price of $4.35 and a 200-day moving average price of $5.43.

Arbor Realty Trust (NYSE:ABR - Get Free Report) last issued its quarterly earnings results on Friday, July 31st. The real estate investment trust reported $0.10 earnings per share for the quarter, topping the consensus estimate of $0.05 by $0.05. Arbor Realty Trust had a return on equity of 7.38% and a net margin of 6.24%. The firm had revenue of $117.83 million during the quarter, compared to the consensus estimate of $107.75 million. On average, analysts expect that Arbor Realty Trust will post 0.19 earnings per share for the current fiscal year.

Arbor Realty Trust Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 14th were paid a dividend of $0.17 per share. This represents a $0.68 dividend on an annualized basis and a dividend yield of 25.4%. The ex-dividend date was Friday, August 14th. Arbor Realty Trust's payout ratio is 971.43%.

Insider Transactions at Arbor Realty Trust

In other news, Director William Green acquired 25,951 shares of Arbor Realty Trust stock in a transaction that occurred on Monday, August 31st. The stock was purchased at an average price of $5.07 per share, for a total transaction of $131,571.57. Following the completion of the transaction, the director directly owned 231,369 shares in the company, valued at approximately $1,173,040.83. This trade represents a 12.63% increase in their ownership of the stock. The purchase was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. 4.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Arbor Realty Trust

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. NFSG Corp lifted its holdings in shares of Arbor Realty Trust by 10.0% in the 1st quarter. NFSG Corp now owns 17,025 shares of the real estate investment trust's stock valued at $131,000 after buying an additional 1,553 shares during the period. Bessemer Group Inc. acquired a new position in Arbor Realty Trust during the first quarter worth $29,000. D.A. Davidson & CO. grew its holdings in Arbor Realty Trust by 7.7% during the first quarter. D.A. Davidson & CO. now owns 69,574 shares of the real estate investment trust's stock worth $536,000 after acquiring an additional 4,952 shares during the period. PNC Financial Services Group Inc. grew its holdings in Arbor Realty Trust by 57.8% during the first quarter. PNC Financial Services Group Inc. now owns 15,654 shares of the real estate investment trust's stock worth $121,000 after acquiring an additional 5,734 shares during the period. Finally, Pictet Asset Management Holding SA raised its position in Arbor Realty Trust by 21.4% in the first quarter. Pictet Asset Management Holding SA now owns 35,719 shares of the real estate investment trust's stock worth $275,000 after acquiring an additional 6,290 shares in the last quarter. Institutional investors and hedge funds own 57.25% of the company's stock.

Arbor Realty Trust Company Profile

Arbor Realty Trust, Inc is a real estate investment trust that provides financing for multifamily and other commercial real estate properties. The company originates, acquires, and invests in a range of structured finance products, including bridge loans, mezzanine loans, preferred equity investments, and other real estate-related debt investments.

Through its lending platforms and subsidiaries, Arbor Realty Trust also provides agency lending services for multifamily properties. These activities include originating and servicing loans through programs associated with Fannie Mae, Freddie Mac, and the U.S.

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